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>> and now "bbc world news." hello, and welcome. >> the headlines this hour -- libyan letter leaders say their military commander has been shot dead by an armed gang. down to the wire, markets get nervous as the u.s. congress prepares to vote on the country's huge debt. >> another revelation and the uk phone hacking scandal. and a year after floods devastated pakistan, we talk to the man in charge of the u.n. relief operation. it is 9:00 a.m. and singapore. >> it is 2:00 a.m. in london, broadcasting on pbs in america and around the world, this is "newsday."

hello and welcome. rebel leaders in that libya say their military leader, general younes, has been shot dead. the head of the council said he was killed by an armed gang after he was recalled from the front to appear before a judicial committee. >> for many years, younes was firmly at colonel gaddafi's side. when the conflict broke out in february, he was one of the first high-profile figures to defect. though he became the man who led the note rebels' military against colonel gaddafi, it seems he was never fully trusted by the insurgents. some suggest that his presence spearheading their efforts to topple the government deeply

uncomfortable. nor was he ever given by the gaddafi inner circle. either way, his death has come under strange circumstances. the chairman of the national transitional council said that general younes was shot shortly before he was to appear before a judicial committee. an armed gang apparently shot him and to aids. -- and two aides. what bearing his death may have on the conflict is hard to gauge. if the rebels tried to push on, and ultimately overthrow colonel gaddafi, it is not clear if the rebel leadership has lost a valuable asset or compromised former insider. u.s. political leaders are wrangling over how to resolve the american debt crisis with no immediate solution in sight. a key vote was too late thursday but has been delayed. steve kingston and washington

has more details on the key votes. >> republican leaders say they still expect the vote to take place in the house of representatives. behind the scenes, it would appear they do not yet have the numbers they need to get approval of the proposal. this is a combined proposal, to temporarily lift the debt ceiling and get america at of the immediate financial mess next week, and at the same time make deep cuts to their gargantuan u.s. budget deficit. this is the first time that a proposal will have been voted on on either the house or senate. it is the first big test of the republican leadership. house speaker john boehner said it is a must that he get that -- that is passed tonight. it will damage his credibility if it does not happen. we will wait to see if he gets the votes. >> with no sign of a deal so far, we have the reaction from the asian markets.

>> so far, the markets are lackluster, moving sideways. overall, investors remain nervous as there is still no resolution in sight in the u.s. debt ceiling issue. there is fear that the deal will not be done by next tuesday. some analysts believe that they fear crisis in the u.s. or europe will hit the asian financial markets just as hard as three years ago. despite the economic growth of the past decade, asia still remains deeply reliant on both of them, not only through exports of goods and services, but increasingly through the financial system and capital flows. as for wall street, buyers remained on the sidelines. in the currency markets, the euro continues to slip on sovereign debt fears, while the dollar is volatile ahead of the congressional vote. the yen is near four-month highs against the greenback.

the singapore dollar and the australian dollar remained strong. there are now steady at record and a multiple year highs. food prices are moving higher because of the uncertainty on the u.s. debt ceiling and a tropical storm and the gulf of mexico. that is the latest on the asian markets. in the u.k., more allegations in the phone hacking scandal have a rock to the murdoch media empire. it appears the mother of a murdered school girl may have had her mobile phone hacked by investigators who worked for "news of the world" newspaper. sara payne says she is devastated by the revelations. >> perhaps, it seems, this astonishing affair no longer has the capacity to shock. the allegation this evening is that a bereaved mother who worked alongside "the news of the world" alongside the former

editor was all along its victim. sara payne was contacted last night to be told her details were in the notebooks of a phone hacker. in a statement it said, sarah is absolutely devastated by the news. we are all deeply disappointed and just working to get her through. the last night of "the news of the world," its last edition, sara payne had been previously told she was not a hackings victim. she had agreed to write an article for the formal budget former issue. she described the tablet as a force of good. >> we have had a series of tragic news stories. >> rebecca brooks, former editor, describes her pain as her dear friend. they worked together to campaign for sara's law, the public right to know where pedophiles are living. tonight, rebekah brooks said the

allegations are a port and upsetting. the idea that anybody on the newspaper knew that sarah payne at or target it is unthinkable. the campaign began in 2000. the man was arrested in 2006. it is not known when he obtained the phone information, whether he intercepted her voice mail and who may have requested it. but it was -- but if it was "news international," this was the reaction. >> what they gave personal support to sara payne and her family. they produced literature, campaign materials, party conferences, introduced her to politicians. i see this as the ultimate betrayal of trust. >> there were high-level meetings and a mobile phone. it may be the one that was targeted. sources linked to miss brooks and the newspaper have said the voice mail on this fund was not activated until 18 months ago,

suggesting there were no messages. today's allegations surfaced hours after a justice said his judicial inquiry could begin what the police continue to investigate. >> i believe is should be possible to focus on the extent of the problem, which and we would not prejudice the investigation, without examining who did what to whom. >> "news international" said once the facts were known that it would take action. >> i have no comment to make. in china, the government is facing a public backlash over the way that it handled a high- speed train crash that killed 39 people. authorities say it was caused by failing equipment, but allegations of corruption and lack of transparency are fueling anger. in an attempt to call on the

situation, a premier visit the crash site. we have this report from the scene. >> this is the soft paternal face of the communist party. in times of crisis, like this, the premier is called upon to suit the nation's nerves. at the crash site, he paid his respects, but he was also bowling to public pressure -- bowing to public pressure. >> no matter if it is a mechanical fault, a management problem, or, indeed, in manufacturing issue, we will get to the bottom of this. >> the high-speed trains collided on saturday night. authorities say the crash was caused by a signal failure.

this train crash also called in to the question the future of the high-speed rail network and also created a deep sense of mistrust between the authorities and the people. in a seating public anger has been building over a lack of answers. it has been inflamed by allegations of corruption, which are likely to compromise the safety of the network. they are looking for answers. this woman's husband was killed in the crash. >> officials from the railway ministry shrug off responsibility. they kept blaming the accident on lightning strikes. what i am waiting for is a clear explanation of what happened. >> china is spending hundreds of billions of dollars on its high- speed rail network. but critics say it has been built too fast, which is compromising safety.

what had started as a project that generated a huge natural -- huge national pride has created anchor. -- anger. three civilians have been shot dead by syrian security forces in the east. the latest deaths came a day after it least 10 people were reported to of been killed by government forces. that happened near the town of damascus. syrian security forces are trying to put down continuing protests against the president. the new president of peru has been sworn in, promising greater share of the benefits of economic growth. during the ceremony, the former army commander said he was confirmed as a moderate and promised to tackle inequality and corruption. taliban militants have carried out a major attack in southern afghanistan using multiple suicide bombers, rocket-propelled grenades, and

machine guns. more than 20 people were killed, including a bbc reporter. it targeted the offices of the deputy governor, the police headquarters, and a private security firm. you are watching "newsday." still to come, the u.s. and north korea hold talks in new york. >> in the footsteps of john steinbeck, we find out what life is like for americans 20 -- seven years after the great book was published -- more than 70 years after the great book was published. norwegian police have finished their search for bodies on the island. anders breivik has admitted to killing 68 people. prosecutors say he will be interrogated friday.

we have this report from oslo. >> at the cathedral, the floral carpet continues to grow. this person knows that one of these attributes could easily been for him. he came face-to-face with the gun man and lift. >>-- and lived,. >> he started shooting around me and he got several of the guys around me. then he had to reload his gun. then i got my chance to get away, and i ran into the water and i started swimming. i got my clothing off, kicked my boots off, and started swimming. if >> was the firing at you? >> he reloaded and started firing again. then he went to the water and shot many of the people trying to escape. luckily, he did not get made. i was just lucky. >> the majority of the people escaped anders breivik, but does

that mean a completely avoided harm. psychiatrists say many are suffering. >> this is an act of human destructiveness, and that causes more stress than injuries caused by nature or other accidents. that means the first point is to realize what is really going on, because many get a feeling of this is not real. >> the latest step in healing will come tomorrow with a memorial event in the city center to mark the exact time the attacks took place. this is "newsday" on bbc. >> the headlines this hour, the commander of the libyan rebel military command has been rigid military campaign has been killed.

>> u.s. house of representatives is preparing to vote on the republican plan for a short-term increase in america's debt limit. story,'s stay with that the vote on the u.s. debt ceiling, which has been delayed. we speak with a senior fellow of economic studies at the brookings institution in washington, who joins us on the line. what do you make of this delay? it shows republicans are really digging in their heels? >> it shows that. this is not unusual, though. often, these kind of shenanigans happen right up until the final vote it appears the republicans do not have the vote. the vote is about three hours late. it is not clear what would happen. even if it passes the house, it will not pass the senate in its present form. there will have to be negotiations between house and senate. there is still a long ways to go. >> what happens now?

if john boehner cannot get agreement, what happens? why is this happening? are republicans really struggling to get this agreement, or are they trying to do more, a political statement, trying to damage president obama? >> i don't think that is part of it at all. republicans, especially the newly elected, so called freshman, i think they want to much. they would really like to cut trillions in spending and they did not want any taxes, which until probably three days ago was the biggest issue. the democrats have capitulated on the tax issue. the plan now has about $1 trillion in savings, and there is a faction of republicans who want to have more than that. they think it is not a long-term solution and they say they will not vote for it. and that none of the democrats are going to vote for it.

so republicans can only lose about 20 votes. if they lose more than that, they will not pass it. >> what happens if they do not meet this deadline? the treasury is no doubt looking at who they should pay and who they should not, and you as a formal -- former congressional adviser, to you know what gets paid? >> my guess is what will happen, if it went on it several months, then a lot of people would not get paid and it could even eventually get to people who are disabled, maybe military people, a lot of contractors for the government would not get paid. it would be up to the president and the treasury department to decide who gets paid. the problem is simple, we can spend any money that comes in, but we cannot borrow any more money, and we will have more bills, starting the first day, then we have income from taxes. we cannot pay everything and the

president will have to decide who gets paid and who does not. we will certainly pay the creditors. anybody who loaned us money, i think, we would at least pay them. after that, probably social security, but eventually, a lot of people would lose payments. >> thank you for your view on that delayed a vote on the debt limit in the u.s. and we will watch and bring you whenever we find out. let's cross over to rico. there have been high-level talks between u.s. and north korea in new york? >> indeed, the u.s. and north korean officials have begun talks in new york, with a sign of possible easing of military tensions. while the americans say they're looking for signs that north korea is serious about resuming negotiations on its nuclear weapons program, our correspondent is at the u.n.

bureau and york. i asked if there had been any progress on these bilateral talks. >> it is difficult to say. the officials have not been telling us much. they have been throwing out diplomatic cliches. the north korean envoys said they were constructive and interesting. it make what you will love that. the americans publicly have been cautious. they have had their fingers burned before. the north koreans had agreed to dismantle their nuclear program in 2005. since then, that have tested to nuclear bombs and started a uranium enrichment program. the americans are saying this is just a net exploratory meeting to see if north korea is serious -- just to see if north korea is serious about denuclearization. one year ago, thousands of people were killed in pakistan. it 20 million people are thought to have been affected across the country.

the heavy rain moved into the south. our correspondent spoke with the u.n. humanitarian aid to pakistan about the effects of the flood. >> i think a lot has been done, but given the magnitude of the disaster, there is still a lot outstanding. that is, when we talk about the flood and its impact, we need to remind people this is not a one time event. this is a flood that literally went downstream and destroyed livelihood's overextended time, several months in certain areas, particularly in put job. -- in punjab. >> it will shock many that there are thousands of people displaced. why has that happened? what are there still people without homes? >> a lot has been done, but a

lot remains. the sheer magnitude of the devastation is such that the problem continues to linger. resources have been put at the disposal of the recovery. the emergency response has been good, but it has also been short of the need and expectations. >> the monsoon season and pakistan is about to begin again. what will the impact be if there are heavy rains again, more than expected, as there were last year? >> we have areas where major infrastructure has been washed away. pakistan is trying to rebuild those assets. infrastructure has been washed away, irrigation channels have been washed away. a lot of repairs have taken place, but there is also the possibility that those efforts could be jeopardized.

over now to more on the state of the u.s. economy. >> as lawmakers argue on capitol hill, many americans are struggling under the burden of high unemployment and an uncertain financial future, a story reminiscent of that told by john steinbeck in his pulitzer prize-winning novel "the grapes of wrath." what can the journey of the family tells about modern day society? >> with unemployment rising, the great american job search goes on. albuquerque, still suffering from the bust of the house price boom, posted increased unemployment in june, in part because of a pickup in public sector jobs. for those who did not succeed, there is a growing problem, where to live.

this is a shelter for the homeless. jeremy reynolds runs it. has it got worse? >> absolutely, absolutely. i anticipate getting worse. >> why? >> because we have a faltering economy. all these people around here, if you ask them how the economy has rebounded for them, they would laugh you off the property. >> normally the families who come here would be capped at it -- coping with brick, drugs, or domestic problems, but now there is a new group. >> we are here because of the economic times. my spouse took off on us, cutting our income in half, and we lost our place. here we are. >> they have been living like this three months. he is a truck driver, but he cannot get work. so he lives on his welfare

money, $300 per month this man used to be a manager of a vehicle fleet. they lifted a motel, but the money ran out. >> when you have to downgrade, you have to downgrade your lifestyle, and sometimes those bills add up and get further and further behind. the car starts getting repossessed, cannot pay. >> how has it been to cope with this? >> stressful. >> what is the toughest thing? >> we are going on our second week. >> of what is the hardest thing about it? >> well, just not having my kids here. them. >> yeah. >> that would be my number one concern. >> the low-cost motels in

albuquerque play a hidden role in this crisis. many of them are house and the hidden homeless. what role does a place like this play in the housing and homelessness system? >> huge. many folks, they spend seven, 10 days each month, they get their welfare check. they spend some or all of that on getting a room, seven, 10 days. once the check runs out, they emigrate down to the junction. >> it is a reminder of the basic fact of this recession, it is a housing crisis. many americans cannot afford to put a roof over their heads, and home repossessions are still rising. you have been watching "newsday" from bbc. >> that is it for us from now, but far less on twitter -- but

follow-ups on twitter. take a look. >> make sense of international news at bbc.com/news. >> funding was made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation, and union bank. >> union bank has put its

global financial strength to work for a wide range of companies. what can we do for you? >> "bbc world news" was presented by kcet, los angeles.